Overcoming Barriers to Paying for Distributed Infrastructure

Distributed water strategies can serve same the public functions and provide the same public benefits as conventional infrastructure – water supply reliability, water quality protection, and stormwater capture. So, there’s a strong case that these strategies can and should be paid for with public dollars.  

However, installing distributed strategies on properties utilities do not own or control, including private properties, can raise accounting, legal, and tax concerns about using public dollars to pay for these installations. 

WaterNow has unpacked these issues and has the answers to your questions. In most instances, public water utilities and local governments have legal authority to use bonds or loans backed by rates to pay for distributed infrastructure. There are accounting mechanisms that allow utilities to book these investments, and there are ways to keep bonds tax free even when investing in distributed infrastructure on private property.